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📰 TOP NEWS
Senate confirms Kevin Warsh as Federal Reserve Chair, bringing crypto-friendly leader to central bank
The Senate voted 54-45 to confirm Kevin Warsh as Federal Reserve Chair, ushering in a crypto-friendly leader to the central bank for a four-year term. Chair Jerome Powell's term ended last Friday, though he is expected to remain on the Fed's board until 2028. Warsh previously served on the Fed's Board of Governors from 2006 to 2011 and has described bitcoin as an "important asset that can help inform policymakers." Financial disclosures revealed that Warsh holds investments tied to several crypto companies and projects, including decentralized derivatives exchange dYdX, venture capital firm Polychain Capital, NFT company Dapper Labs, and direct exposure to Solana and Optimism tokens, among other holdings. His confirmation follows a turbulent period at the central bank, during which Trump openly clashed with Powell and attempted to fire him and Federal Reserve Governor Lisa Cook, while the Department of Justice opened, and later dropped, a criminal investigation against Powell over renovations at the central bank's headquarters.
FCA and Bank of England launch joint consultation on tokenized wholesale financial markets
The Financial Conduct Authority and the Bank of England opened a joint consultation seeking industry feedback on regulation, infrastructure, and market practices tied to tokenized wholesale financial markets, covering prudential treatment, tokenized collateral, and settlement instruments. The consultation targets banks, investment firms, asset managers, financial market infrastructure providers, trading venues, and fintech firms developing tokenization solutions, with market participants having until July 3 to submit responses. The regulators said the initiative builds directly on the government's Wholesale Financial Markets Digital Strategy, which identified tokenization as a significant opportunity, particularly in post-trade processes and collateral. The consultation sits alongside a series of broader steps already underway: sixteen firms have passed the first stage of the Digital Securities Sandbox and are working toward going live; the Bank of England separately published a consultation on extending settlement hours toward near 24/7 operation and committed to launching a live synchronization service targeted for 2028; and the FCA published a policy statement in April introducing a framework for wider adoption of fund tokenization, including optional direct-to-fund dealing rules allowing investors to transact directly with tokenized fund structures.
CFTC issues no-action letter relieving prediction market platforms from swap reporting requirements
The CFTC's Division of Market Oversight and Division of Clearing and Risk issued a no-action letter relieving designated contract markets and clearinghouses from swap data reporting and recordkeeping requirements for event contracts, eliminating regulatory uncertainty for prediction market platforms. The letter acknowledged that while such contracts may technically meet the definition of a "swap" given their binary outcomes, they share characteristics closer to futures and options, and will instead be allowed to report directly to the Commission in a form similar to that used for futures. The no-action position currently covers 19 beneficiaries including Polymarket US, Kalshi, Gemini Titan, and Bitnomial, with other entities able to request inclusion. The relief comes amid an ongoing jurisdictional battle between federal and state authorities over event contracts, with multiple states claiming prediction markets on sports amount to unlicensed betting. Earlier last week, the CFTC challenged Ohio's complaint against Kalshi, with Chair Michael Selig stating that the agency "will not allow overzealous state governments to undermine the agency's longstanding authority over these markets."
Japan's top brokerages develop in-house crypto investment trusts for retail investors
Japan's two largest online brokerages, SBI Securities and Rakuten Securities, are developing crypto investment trusts in-house and plan to sell them directly to retail investors, according to a Nikkei Asia report. SBI Securities will distribute funds built by group company SBI Global Asset Management, with a planned lineup spanning ETFs and investment trusts tied to bitcoin and ether, while Rakuten Securities is taking a similar approach through Rakuten Investment Management, with products designed to trade via its smartphone app. Among 18 major Japanese brokerage firms surveyed by Nikkei, another 11 said they would consider offering crypto investment trust products once the regulatory framework is finalized, with Nomura, Daiwa, and SMBC Group also moving forward with plans. The launches would mark a meaningful shift in retail access, as buying digital assets in Japan today typically requires opening a dedicated exchange account, whereas investment trusts could be held through existing brokerage accounts. The ETF timeline has also tightened, with Japan Exchange Group CEO Hiromi Yamaji telling Bloomberg that the Tokyo Stock Exchange could list crypto ETFs as early as 2027 if legal reforms are finalized with Nomura and SBI Holdings expected to lead the first listings.
🎟️ EVENT OF THE WEEK
ETH Milan 2026
On 21-22 May 2026, ETHMilan 2026 brings together leading voices in the Ethereum and Web3 ecosystem for a two-day conference at Museo Nazionale Scienza e Tecnologia Leonardo da Vinci.
The event unites experts, developers, investors, and enthusiasts from around the world to explore the latest trends, cutting-edge research, and innovations across blockchain, decentralized finance, smart contracts, privacy, and beyond.
Date May 21-22 2026
💬 EXPERT OPINION
The biggest unlock in crypto is bringing real life stocks on chain rather than launching new coins.”
📊 METRIC OF THE WEEK
Our researchers designed this metric with ❤️
GLOSSARY CORNER Over the Counter (OTC) trading refers to the direct buying and selling of cryptocurrencies or assets between two parties outside of a traditional exchange, typically used for large-volume transactions to avoid slippage and price impact on public markets. | EDITOR’S CHOICE |
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